Maersk to pull older vessels to cope with excess capacity of mega Triple-E ships

By Finance

The CEO of Maersk Line, Soren Skou told if shippers’ demand falls when the mega 18,000-TEU vessels of his company come on steam, older smaller vessels are going to be withdrawn to take up the slack on the Asia-Europe route.
“As we represent new and larger ships, if the market isn't growing we are going to pull out other capacity to make the balance for us,” stated Mr Skou..
“We did not make money on our Asia-Europe itineraries in 2012, which includes those served by Daily Maersk,” Mr Skou added. “A lack of growth in Europe has curtailed demand; at the same time supply raised up.
“However, [Daily Maersk] has been well-received and is now easily the most reliable in the shipping industry. I'm carefully optimistic that in 2013 we are going to make money in this part of the world,” he told.
Maersk Line is planning to put the 1st 5-Triple-E vessels into service among Asia and Europe this year, and the magazine notes that it comes at a challenging time with volumes shrinking on the trade lane 5% in 2012, and expectation of only 1% growth in 2013.
Maersk Line does 30% of its business among Asia and Europe, Mr Skou told, adding “the key is to manage capacity – that's to act responsibly to assure we don't contribute to oversupply in the industry – that may only lead to rates collapsing.”
Mr Skou told that the mega vessels are going to have the lowest costs in the industry, consuming 35% less fuel than the 13,100-TEU vessels they are going to replace.